Philippines shares make gains

Philippines share prices closed up 0.27 percent on Tuesday, recovering from sharp early losses following a series of bomb attacks late Monday to hit fresh five-year highs, dealers said. Bomb attacks by al Qaeda-linked Abu Sayyaf militants in three cities, including the Makati financial district in Manila, left 12 dead and over 130 injured. The attacks had initially scared off investors but the market then picked up steadily in healthy volumes on the view that the economy remains solid and corporate results should be strong, dealers said.
The Philippine Stock Exchange composite index put on 5.60 points at 2,090.10, coming off a low of 2,047.51. This was the best finish since January 17, 2000, when the main index settled at 2,097.23.
Volume was 6.36 billion pesos worth 2.08 billion pesos (38.5 million dollars) after 4.25 billion shares worth 1.89 billion pesos (34.6 million dollars) on Monday.
The broader all-shares index ended up 2.10 points at 1,207.80.
Gainers led losers 79 to 40, with 36 stocks unchanged.
The attacks "were no big deal to fund managers. Yes, it's unfortunate but it doesn't deflect investor optimism on the economy," said Nestor Aguila of DA Market Securities.
The early morning fall was even taken as an opportunity to accumulate more stocks, he added.
AB Capital Securities research director Jose Vistan said momentum remained intact despite the overbought condition of most stocks. The recent declines in treasury bill rates have further boosted interest in equities, he said.
Security throughout the Philippines was stepped up after the bombings, claimed by a group linked to al Qaeda called the Abu Sayyaf, officials said.
Security around airports, ports, bus terminals, shopping malls and embassies has been increased amid fears that the attacks may be part of a wider, co-ordinated campaign by the Abu Sayyaf group, which Washington and Manila say has direct links to the al Qaeda network. Philippine Long Distance Telephone Co was the most actively traded stock, down 5.00 pesos at 1,430 pesos.
Metro Pacific was second most active, up four centavos 61 centavos. First Philippine Holdings gained 50 centavos to 50 pesos while Metropolitan Bank Trust Co rose 1.00 peso to 37.00 and Benpres Holdings Corp was up eight centavos at 1.26 pesos. Ayala Corp was down 10 centavos at 8.60 pesos, while unit Ayala Land Inc gained 10 centavos at 9.80 pesos after strong results.